Gender-neutral gift-tax exemption upheld where dependency of a minor child and maintenance obligation were both established.

Section 5(1)(ix) of the Gift-tax Act was construed as gender-neutral, because the reference to "his wife" did not justify limiting the exemption to male donors where the statutory context and the General Clauses Act permitted an inclusive reading of "person". The interpretation preferred avoided sex-based discrimination, and the exemption was held available to a female donor as well. The dependency condition for a minor donee was also satisfied, since both parents have a legal duty to maintain a minor and the record affirmed the child's dependence on the assessee without denial. On that basis, the exemption applied and the addition could not stand.

---

---

Issues: (i) Whether the exemption under section 5(1)(ix) of the Gift-tax Act applied only to a male donor or extended equally to a female donor. (ii) Whether the minor donee was dependent on the assessee for support and maintenance so as to satisfy the statutory condition for exemption.

Issue (i): Whether the exemption under section 5(1)(ix) of the Gift-tax Act applied only to a male donor or extended equally to a female donor.

Analysis: The expression used in the provision was construed in the light of the General Clauses Act and the surrounding statutory context. The reference to "his wife" did not compel a restriction of "person" to males only, because the provision could be read consistently by applying the broader inclusive meaning of person and giving effect to the exemption without introducing sex-based exclusion. A construction that avoids discrimination was preferred, and the reliance on the earlier decision dealing with a different statutory context was held not to control the present question.

Conclusion: The exemption under section 5(1)(ix) applied to both male and female donors, and the objection that a female assessee was outside its scope failed.

Issue (ii): Whether the minor donee was dependent on the assessee for support and maintenance so as to satisfy the statutory condition for exemption.

Analysis: The condition of dependence was treated as a legal and factual requirement. The obligation to maintain a minor child exists in law on both parents, and the financial capacity of the other parent did not eliminate the assessee-mother's obligation. The record also contained the assessee's categorical assertion that the minor was dependent on her, and that assertion was not denied.

Conclusion: The minor child was dependent on the assessee, and the statutory condition for exemption was satisfied.

Final Conclusion: The exemption was rightly available to the assessee on both the statutory interpretation and the dependency requirement, so the assessment addition could not stand.

Ratio Decidendi: A taxing exemption framed in gender-neutral terms must be construed to avoid sex-based discrimination where the statutory context permits, and the condition of dependence on a minor child is satisfied where the donor has a legal obligation to maintain the child and the dependency is affirmed on the record.

---